PayPal Explores Offline Payments as DMA Looms

Is PayPal getting ready to offer “offline” payments?

The company seems to be indicating a move in that direction as new European Union regulations go into effect for its partner Apple, per a report Thursday (Feb. 8) by TechCrunch.

As that report noted, the coming Digital Markets Act (DMA) — while aimed at tech giants like Apple — would impact PayPal by allowing third-party apps to access the near-field communication (NFC) technology that powers Apple Pay.

Under the new guidelines, iPhone users will be able to change over to other mobile wallets as their default.

“We are tracking this closely,” CEO Alex Chriss said during a recent earnings call after an investor asked how the company would capitalize on the new access to NFC technology thanks to the DMA. “Apple is a great partner of ours.”

But, the report said, Chriss also indicated that PayPal customers have been looking for a way to use PayPal outside the world of online payments and that the company was working on delivering this.

“…our customers that love PayPal on the online eCommerce side are demanding being able to have an omnichannel and offline solution, as well,” he said. “So, we’ll be working closely on this. And when it is available, we will be ready to be able to deliver for our customers, both online and offline.”

Chriss’ comments came during an earnings call in which the CEO addressed what he characterized as a “transition year” for the company.

As PYMNTS reported, Chriss said that while the latest quarter’s results were “solid, we know there is still much room for improvement, and we are committed to making the necessary changes to our business and how we invest and operate to get it right.”

That restructuring will involve job cuts, with PayPal announcing last week that it will lay off about 9% of its workforce, or 2,500 positions. In the meantime, Chriss said, the company will focus on fueling growth in its branded checkout and boosting overall profitability.

“2024 is going to be a transition year,” Chriss said, and will include “minimal contributions” from the recently announced innovations, detailed in earlier PYMNTS reporting, focused on faster checkouts and “smart” receipts.

The CEO reiterated that the new checkout features can lower checkout times by around 40%. Risk-as-a-service, buy now, pay later, and PayPal Complete Payments, he said, show promise but will “take time to scale.”